One-half of the Winklevoss twins, Cameron Winklevoss has clarified that cryptocurrency doesn’t actually need rules despite what it says on the Gemini advertising slogans. Instead, Cameron believes that it's the crypto companies that deal with the digital assets that need to be regulated more. Winklevoss’ comments come in light of the QuadrigaCX situation that occurred earlier in the year.
The Winklevoss twins have been championing the ‘sanitisation’ of cryptocurrency. With their ‘fully regulated’ Gemini exchange, their goal is to change the negative image associated with the relatively new industry.
Simultaneously, it isn’t a surprise that their ‘crypto needs rules’ poster had a lot of hate directed towards it, specifically by a lot of Bitcoin users.
This seems to because running your own full node is the only effective way to enforce the rules. Of course, the whole idea of Bitcoin when it was designed was so people could make transactions without having to trust anyone.
Cameron Winklevoss said, “some have wondered why Gemini believes the Revolution Needs Rules… Answer: Crypto doesn’t need rules, but the companies built on top of it do.”
Cameron cited an excerpt from court-appointed monitor’s third report filed in Nova Scotia Supreme Court on the matt of the defunct QuadrigaCX exchange that lost million in customer funds.
Some have wondered why @Gemini believes the Revolution Needs Rules. Answer: Crypto doesn't need rules, but the companies built on top of it do. See excerpt from court-appointed monitor's (Ernst & Young) third report filed in Nova Scotia Supreme Court re: QuadrigaCX matter pic.twitter.com/Dvw8Am5H9M— Cameron Winklevoss (@winklevoss) March 14, 2019
Even though using the Bitcoin blockchain requires almost no trust, its ‘byzantine’ fault tolerance raises questions once funds are transferred to a custodial third party, just like an exchange. This is when trust comes back, which the twins say is their product that they are trying to build up with their Gemini exchange.
Cameron said, “QuadrigaCX was editing its own internal ledger to move customer funds into special accounts controlled by insiders, who were allowed to trade using those funds and even transfer cryptocurrency out to external wallets.”